Art’s Architecture Firm begins business on January 1 of the current year. The company charges $100 per hour for their services. Art estimates first-quarter chargeable hours as follows:
January ....... 100
February ..... 500
March ...... 400
Total........1,000
The firm expects cash to be collected in the following manner:
40 percent of revenues collected in the month of work
50 percent of revenues collected in the month following work
10 percent of revenues collected in second month following work

Required
Prepare a cash receipts budget for the first quarter. How much will clients owe the company at the end of March if revenues are exactly as estimated?